KOSPI and KOSDAQ rebound in the 1% range as foreign investors and institutions lead buying [fn Closing Market]

[Financial News] South Korea's stock market, which had been gripped by the shock of a steep drop, managed to rebound. The KOSPI, which had fallen more than 3% early in the session, turned higher on buying by both foreign investors and institutions, while the KOSDAQ also posted a gain in the 1% range.
Individual investors, however, net sold more than 1.9 trillion won worth of shares on the KOSPI, reversing the balance of market participants in the rebound.
According to the Korea Exchange on the 19th, the KOSPI closed at 5,768.01, up 99.96 points (1.76%) from the previous trading day. The index opened at 5,488.41 and plunged early in the session, but later pared its losses and turned higher in the afternoon. The KOSDAQ also closed at 808.89, up 14.11 points (1.78%).
Foreign investors and institutions led the rebound in terms of trading flows. On the main board, foreign investors net bought 548.5 billion won, while institutions net bought 955.8 billion won.
Individuals, by contrast, net sold 1.9323 trillion won. Individuals, who had bought shares at lower prices during the sharp downturn, shifted to net selling during the rebound, while foreign investors and institutions bought shares.
On the KOSDAQ, individuals and institutions net bought 22.2 billion won and 53.4 billion won, respectively, while foreign investors net sold 86 billion won. Investment flows varied by market, with buying by foreign investors and institutions standing out on the main board.
Most of the largest stocks by market capitalization also gained. Samsung Electronics closed at 218,000 won, up 1.16% from the previous trading day, while SK hynix closed at 1,277,000 won, up 0.39%. Samsung Electro-Mechanics (1.52%), LG Energy Solution (4.49%) and Hyundai Motor (4.49%) also rose.
Samsung Biologics surged 8.71% to close at 1,411,000 won, posting a strong rebound. The pharmaceuticals sector recorded the biggest gain among KOSPI sectors that day, reflecting a preference for defensive stocks and divergent performance across sectors.
Analysts say investors may need to change how they view the market after the steep decline. Kim Gyeong-yeon, a researcher at Mirae Asset Securities, stressed that investors should look at the outlook for leading companies in each sector rather than be gripped by fear.
The possibility that China's ChangXin Memory Technologies (CXMT) could catch up technologically, along with concerns over Anthropic's revenue outlook, has recently emerged as a factor weighing on semiconductor stocks. However, the view is that it is difficult to conclude that these developments have materially damaged industry conditions.
Kim said, “Taiwan Semiconductor Manufacturing Company Limited (TSMC) is maintaining its long-term growth outlook for the artificial intelligence (AI) accelerator market, and AI demand remains robust,” adding, “ASML Holding N.V. (ASML) of the Netherlands also expects demand for leading-edge semiconductor equipment to exceed supply.”
Even if some PC and mobile demand undergoes a correction, demand for data-center SSDs and server DRAM remains robust, so there is no need to take an overly pessimistic view of the semiconductor industry outlook, the analysis said. The earnings growth prospects and valuation appeal of Samsung Electronics and SK hynix were also assessed as still intact.
KB Securities pointed to the need for a change in investment strategy based on how individual stocks performed during the recent sharp downturn. Analyzing the rebound after the KOSPI fell 20.7% over seven trading days from October 6 to 15, KB Securities said that in the recent market, stocks whose prices had fallen sharply and whose potential for a turnaround had come into focus relatively outperformed defensive stocks with strong earnings.
The report said a contrarian approach—looking for opportunities to buy at lower prices in particular sectors and stocks—has become important. Automobiles, retail, cosmetics, entertainment, biotechnology, software and gaming were cited as potential sectors.
Although South Korea's stock market rebounded that day, it is difficult to say that market anxiety has been fully dispelled. Whether buying by foreign investors and institutions continues, and whether the rebound in large-cap stocks, including semiconductors, spreads to other sectors, are expected to be key factors going forward.
[email protected] Kang Jung-mo Reporter